Guidance

Electric vehicles: costs, charging and infrastructure

Published 5 February 2024

The transition to electric vehicles (EVs) is a crucial step towards achieving the UK’s net zero target. This guidance provides information on EVs and EV charging infrastructure.

Buying an electric vehicle

While a new electric vehicle (EV) costs more to buy up front, today most drivers in the UK (around 80%) will buy their cars on the used market. Industry intelligence suggests that some EVs on the used market are now similar in price to their petrol and diesel equivalents. The number of used EV purchases have grown by over 50% when comparing the first quarter of 2022 to 2023, increasing the pool of used vehicles available.

The price gap for new cars has continued to decrease over the past few years. According to industry data, the purchase price premium of an EV – relative to an equivalent internal combustion engine (ICE) vehicle – has dropped from around 50% in 2020 to around 40% in 2023. With battery costs reducing and continued innovation, some external forecasts predict that some EVs could be around the same price to purchase as a petrol or diesel car by the end of the 2020s.

Many workplaces provide salary sacrifice schemes, which can reduce the cost of purchasing an EV. To support this, company car tax is favourable for EVs at only 2%. The government has confirmed that company car tax for EVs will increase 1% each year from 2025 to a total of 5% in April 2028. By contrast, the most polluting cars will pay 37% company car tax in 2028. EVs are also exempt from vehicle excise duty until 2025 and will continue to receive favourable first-year rates after this.

In many cases, an EV is cheaper to run than a petrol or diesel car, with lower maintenance and repair costs. Recently published independent research suggests an average saving of £700 a year.

It is predicted that someone buying a new EV next year will recoup the additional upfront cost within 5 years due to lower running costs.

Owning an electric vehicle 

Industry research shows that the vast majority of EV drivers are happy with their experience (85%) and would recommend an EV to family or friends (83%). Zapmap’s annual survey of EV drivers also indicates that less than 3% would want to switch back to a petrol or diesel vehicle.  

Battery range

As 99% of car journeys in England are under 100 miles, most could be made by an EV without needing to recharge.

According to the Society of Motor Manufacturers and Traders, the average electric range for new EVs launched in 2023 was nearly 300 miles, compared to 210 miles in 2020. Some on the market have a quoted range of over 300 miles, which is enough to travel from Exeter to Leeds. There are now more than 30 models available with a quoted 200-plus mile range.

With battery costs falling around 80% over the past 10 years and further decreases expected, the government expects to see increasing numbers of EVs with higher ranges.

Recent data from the Automobile Association (AA) indicated only 2.3% of the EV callouts the AA received in the year to the end of October 2023 were due to batteries having limited or no charge compared to around 1% of the callouts for petrol and diesel vehicles running out of fuel.

Charging costs

In many cases, EVs continue to benefit from significant savings on the cost of fuel.

Charging a medium-sized electric car at home can cost around half the price of filling up an equivalent petrol vehicle. Charging at home costs around 8p per mile while a diesel or petrol vehicle can cost around 13p to 17p per mile to fuel, as of January 2024. Some suppliers continue to offer tariffs enabling drivers to charge their EVs at under 3p per mile (such as an overnight tariff offered by Octopus Energy).

On average, Zapmap charging data shows that the cost of charging an EV on the public network is roughly equivalent to fuelling an equivalent petrol car.

Charging at home and away

Most EV drivers charge at home overnight. The Department for Transport’s survey of electric and/or plug-in hybrid vehicle drivers (2022) found that almost all respondents (93%) had access to home charging and 90% of them charged overnight. The government expects this trend to continue. 

In 2022, the government introduced regulations requiring the installation of charging infrastructure in the following locations, where there is associated parking:

• new homes
• new non-residential buildings
• buildings undergoing major renovations

It is expected that this will lead to the installation of up to 145,000 new chargepoints across England every year.  

Government grants have supported the installation of over 400,000 chargepoints in homes and businesses. There will also be many more domestic and workplace chargepoints that the government has not funded, representing a significant off-street charging infrastructure across the UK.

The number of public chargepoints is growing fast. In January 2024, there were more than 53,600 public chargepoints available across the UK, a 45% increase since the start of 2023. This puts us on a growth rate consistent with delivering at least 300,000 chargepoints by 2030, in line with our forecast charging demand.

Availability of public charging devices is expected to continue increasing. ChargeUK, the industry body for chargepoint operators, has committed to investing more than £6 billion in charging infrastructure before 2030 and doubling the number of chargepoints over the next 12 months.

Continued government investment also means more chargepoints for local residential areas and along the strategic road network. The Local EV Infrastructure (LEVI) Fund will deliver tens of thousands of local chargepoints and better access to EV chargers for all. The government has committed £381 million to local authorities in England through this fund to ensure the transition to electric vehicles takes place in every part of England. The LEVI pilot, launched in August 2022, has funded almost 3,400 chargepoints and 1,000 gullies to drivers without off-street parking. 

In December 2023, the government launched the £70 million rapid charging fund pilot, which will facilitate industry’s rollout of ultra-rapid chargepoints at motorway service areas. Charging is already available at 97% of motorway service areas, with more than 800 rapid or ultra-rapid chargers in these locations.

Last year, the Plan for Drivers also announced measures to make it easier for drivers to access cheaper charging close to their homes, including:

• making it simpler for operators to install chargepoints
• expanding the EV chargepoint grant to trial cross-pavement solutions

The government has introduced regulations to increase confidence in the charging network. These will ensure that pricing information and payment methods are simplified, chargepoints are reliable and public chargepoint data is freely available.

Charging time 

The majority of EV charging is done on low power chargepoints at or near home overnight while you sleep, or are at work, which does not add any time onto your day. 

However, when you need to charge on the go, there is an increasing amount of rapid and ultra-rapid chargepoints available. Charging is already available at 97% of motorway service areas, with more than 800 rapid or ultra-rapid chargers in these locations.  

The time it takes a car to charge will depend on the size and type of the car battery and chargepoint. However, an ultra-rapid 150kW charger could completely charge a 60kW EV in 24 minutes.

EV lifecycle emissions

Over its lifetime, a typical EV emits around two-thirds less greenhouse gas emissions than an equivalent petrol car, even accounting for battery production and disposal. Over time, these emissions will reduce, due to the government’s clearly stated ambition to decarbonise the power sector by 2035. By 2050, it is estimated that an EV will produce over 80% less emissions than an equivalent petrol vehicle.

Between 1990 and 2021, the UK has reduced greenhouse gas emissions in our energy supply system by 69%. Taken together, renewables and other low carbon generation, such as nuclear and wind energy, currently provide over 50% of the UK’s electricity.

EVs also have a significant benefit on local air quality, due to zero tailpipe emissions and reduction in brake wear emissions.

Replacing and recycling EV batteries

There are already more than 26 million EVs on the world’s roads and there is no evidence to suggest that their lifespans are any different from petrol or diesel vehicles. EVs are already in daily use across the UK’s roads as taxis and as part of other high-mileage fleets.

New regulations mandate EV battery warranties of 8 years or 100,000 miles, with manufacturers needing to provide a replacement battery if capacity falls below 70% for cars and 65% for vans during this period. This is far longer than standard new petrol or diesel car warranties of around 3 years.

The government has committed over £500 million to the Faraday Battery Challenge to support the research, development and scale-up of world-leading battery technology right here in the UK, including pioneering work on improving battery life.

When you are ready to replace your EV, there are steps in place to make sure batteries are recycled without damaging the environment. Manufacturers are obligated to take back EV batteries free of charge to be treated at permitted facilities that meet strict standards.

To help maximise the economic and environmental opportunities during the transition to zero emission vehicles, the government is providing grant support to a ground-breaking project (RECOVAS) that will develop the UK’s first commercial-scale recycling facility for EV batteries.

Supply of EV batteries

There are more than enough resources to build EV batteries to meet estimated demand until 2050. However, the government recognises that production and recycling will need to scale up in line with the increasing demand for EVs.

The UK has attracted significant investments in gigafactories and EV manufacturing, with over £6 billion from companies including Nissan and BMW, as well as Tata, which is expected to provide almost half of the UK’s required battery production by 2030.

The UK battery strategy allocates over £2 billion until 2030 to establish global leadership in sustainable battery design, support the automotive transition to zero emission vehicles and foster economic growth through strategic partnerships in critical minerals. For example, the UK-Australia Free Trade Agreement reduces barriers to trade for critical minerals such as lithium, nickel, manganese, and cobalt. Australia currently produces about half of the world’s lithium.

EV safety

EVs are significantly quieter than petrol and diesel vehicles, reducing noise pollution and providing an improved environment for drivers. However, the government is committed to ensuring that future transport is safe and accessible for everyone.

In 2019 the government introduced regulations mandating that all manufacturers must install acoustic sound systems in all new quiet EVs. These will produce a specified level of noise when vehicles are reversing or travelling at slow speeds. This will allow pedestrians and other road users to hear EVs more easily.  

Multiple safety systems are designed into EVs to protect passengers, emergency services personnel and other users from harm. Before an EV can be sold or registered in the UK, manufacturers must provide evidence of compliance with international approval requirements. This assessment includes thorough evaluations of fire and electrical safety.

There is no evidence to suggest that fires in EVs are more likely to occur than in petrol or diesel vehicles. There is limited data currently available in the UK. However, some studies of international data have indicated that EV fires are less likely to occur than petrol or diesel fires. For example, in Norway between 2016 and 2021, proportionally, petrol or diesel vehicles were involved in 4 times more fires compared to electric vehicles.

Police investigations have confirmed that the Luton car park fire in October 2023 was not started by an EV. The source was a diesel vehicle.

Using a trailer or caravan with an EV

Like all other cars, EVs need to be ‘type approved’ to tow a caravan or trailer. An increasing number of EVs are coming to market with this capability – such as the BMW iX, KIA EV6 or the Tesla Model Y, as well as models from other manufacturers.

When an EV is being towed by another vehicle at higher speeds and longer distances, many manufacturers require that it must be towed with the wheels off the ground. This is also the case for automatic petrol and diesel vehicles, so this is not a new challenge for vehicle recovery companies. Innovative solutions have already been developed and deployed by recovery operators, including the AA and the RAC.

If an EV breaks down and is in immediate danger (for example, when in a live traffic lane), it can be towed slowly a short distance to a safe location to await further assistance, just like any other vehicle.

Electricity demand

Estimates suggest that electrifying the vehicle fleet could result in road transport making up 15% to 20% of total electricity demand in 2050. The government is confident the grid will be able to cope.

Government and the Office of Gas and Electricity Markets (Ofgem), the energy regulator, are working together to deliver a smart, flexible electricity system. This will facilitate continuous improvement in the speed and affordability of grid connections to deliver an energy system fit for both current and future consumers. 

Smart charging is also important as it allows EV charging to take place when demand for electricity is lower. For example, at night or when there is lots of renewable energy on the grid. Research suggests that the majority of chargepoints at UK homes already have smart functionality. The government has implemented regulations that require all new home or workplace chargepoints sold to have smart functionality.

This reduces electricity system costs, lowering prices for everyone. The motorist pays less for charging their vehicle and the electricity powering an EV is greener.

Weight of EVs

While EVs tend to be heavier than equivalent petrol or diesel vehicles, on average passenger cars have been increasing in weight for many years. This trend has been driven by consumer choice and improving safety features for passengers. Many petrol and diesel cars are as heavy as EVs.

Heavy goods vehicles (HGVs) are the key consideration in the design and engineering of infrastructure, rather than cars or vans, which are relatively light in comparison regardless of fuel source.

Local highway authorities are responsible for managing the condition of their roads and bridges and setting weight and capacity limits if necessary. Owners of public car parks are responsible for ensuring that they are suitable for the vehicles that are likely to be using them.

Hydrogen versus battery

The government is technology-neutral.

Fuel cells produce electricity cleanly from hydrogen, with the only waste products being water and a small amount of heat.

The government welcomes the sustained investment into cutting-edge research and development of hydrogen combustion to optimise its real-world performance, as well as to curb nitrogen oxide and trace carbon dioxide exhaust emissions.

Hydrogen is a significant industrial opportunity for the UK and is likely to play a major role in supporting the decarbonisation of industrial processes, power and some parts of transport, such as maritime and aviation (either through direct use or sustainable aviation fuels).

Given the potential future of zero emission propulsion, government has convened an industry taskforce to maximise investment opportunities for the UK manufacturing of hydrogen propulsion systems.

The use of synthetic fuels based on carbon dioxide (CO2) is of interest in transport as a way of reducing its consumption of fossil fuels and reducing its greenhouse gas emissions. While synthetic fuel production for transport has been limited to date, it is now being actively encouraged with government policy support in aviation, as well as being promoted as a longer-term alternative to electrification for new vehicles with particular performance requirements, such as Formula 1 or high-performance sports cars, and as a means of fuelling classic cars in the future.